Great Financing News!!!

On May 6, 2008, Fannie Mae made an announcement to improve the new Jumbo Agency program pricing to be closer to Conforming Agency pricing throught the end of the year. As a result, the rate difference between Conforming Loans ( Loans under $417,000) and “Jumbo Conforming” loans ( Loans between $417,000 and $729,750) shrank from about 0.50% to 0.125%.

This means that “Conforming Jumbo” Loans are at an interest rate of approx.  5.875% at .50 point Cost ( As of 5/7/08)!   Apr 5.937%. Keep in mind that these new increased “Jumbo Conforming” loans are due to expire at the end of this year, so now is a great time to consider buying a home, especially a condominium in the South Bay and the Palos Verdes Peninsula. When the conforming loan limits drop back to $417,000 at the end of this year, loans in excess of this amount will be at a much higher interest rate ( Jumbo loans cureently are at an interest rate of approx. 7.1%).